Enhanced First-Time Homebuyer Program

What is Enhanced First-Time Homebuyer Program?

Enhanced First-Time Homebuyer Program is a grant for homebuyers in New Bedford, Massachusetts.

• The Enhanced First-Time Homebuyer Program is the City of New Bedford's expanded ARPA-funded forgivable grant launched to broaden access to homeownership for moderate-income (up to 120% AMI) first-time buyers. It supplements the City's longstanding HOME-funded Neighborhoods First DPA (capped at 80% AMI). Funds may be used for down payment, closing costs, or interest-rate buydown. Awards are secured by a 5-year affordability deed restriction; the grant is fully forgiven if the buyer continuously occupies the home as primary residence for 5 years.
• ARPA-funded enhanced grant of up to $35,000 (originally up to $25,000) toward down payment, closing costs, and interest-rate buydown for income-eligible first-time homebuyers purchasing in the City of New Bedford. Structured as a 5-year forgivable grant secured by a deed restriction.
• balance forgiven entirely if buyer remains in the property as primary residence for the 5-year compliance period. Funding is finite (ARPA / SLFRF) and the program is winding down as ARPA dollars are exhausted, but the City has indicated it will continue prioritizing homeownership programs as future federal funding allows.
• Funding comes from ARPA, SLFRF, Federal, and Local Government.

Do you have to pay it back?

Enhanced First-Time Homebuyer Program is structured as a grant, so it is not repaid.

• Repayment is triggered by Forgivable grant: 100% forgiven after 5 years of continuous primary occupancy and full repayment owed if home is sold, transferred, refinanced with cash-out, or ceases to be primary residence within 5 years.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Enhanced First-Time Homebuyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Enhanced First-Time Homebuyer Program limits household income to 120% of the area median income, which varies by county and household size.

• Household income at or below 120% AMI for New Bedford HMFA: ~$92,050 1-person, $105,200 2-person, $118,350 3-person, $131,500 4-person, up to ~$173,500 8-person (FY26).
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Enhanced First-Time Homebuyer Program caps the purchase price as follows: No fixed cap; property must comply with HUD HOME / SLFRF underwriting reasonableness review.

• Eligible property types include Single-family detached, Two-family, Three-family, and Condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Enhanced First-Time Homebuyer Program names educators, law enforcement officers, and firefighters among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Enhanced First-Time Homebuyer Program serves buyers purchasing in New Bedford, Massachusetts.

How do you apply?

Applications for Enhanced First-Time Homebuyer Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved homebuyer-education agency (typically PACE/Plan-It Smart or NeighborWorks Southern Mass); 8-hour pre-purchase education plus post-purchase session required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served; applicant submits HCD application with lender pre-approval. ARPA funding is finite and program is nearly fully committed., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.